Forex news from the European morning session - 19 November 2019
Headlines:
- UK November CBI trends total orders -26 vs -30 expected
- PBOC says to continue with prudent monetary policy
- Let's take stock of US-China trade talks
- There's just no stopping the buying in the market
- Switzerland October trade balance CHF 3.50 billion vs CHF 4.02 billion prior
- Fed pricing shows markets aren't putting much emphasis on Trump-Powell meeting
Markets:
- NZD leads, CHF lags on the day
- European equities higher; E-minis up 0.3%
- US 10-year yields flat at 1.815%
- Gold down 0.3% to $1,467.32
- WTI down 1.0% to $56.48
- Bitcoin down 2.3% to $8,027
Equities continue their relentless march forward with S&P 500 futures currently sitting 8 points higher on the session as we hit European midday.
That lead a move higher in currencies with USD/JPY rising from 108.65 to 108.84 before settling back as bond yields stayed more cautious overall. Meanwhile, AUD/USD recovered its earlier losses rebounding from 0.6795 to 0.6820.
The dollar kept more steady though with little change observed in EUR/USD while GBP/USD inched lower slightly but is holding at near-term support levels for now.
It's a bit of a mixed mood in markets as bonds continue to hint at some caution with regards to US-China trade talks but equities are ploughing higher in spite of recent pessimism.
Looking ahead, be wary of more potential trade headlines that could mess with the risk mood but unless something official comes about, this looks like a market that is ready to keep buying until a real spanner is thrown in the works.
